Independent Durability Tests Show AXION Formulated Rail Ties in Use for More Than 8 Years Continue to Exceed Performance Standards

Long Island Rail Road Purchases More ECOTRAX™ Made From 100% Recycled Plastic Collected by NYC Dept. of Sanitation

NEW PROVIDENCE, NJ--(Marketwire - Jan 9, 2013) - AXION International Holdings, Inc. (OTCBB: AXIH) (OTCQB: AXIH), a leader in recycled plastic and plastic composite technologies used to produce ECOTRAX™ rail ties and STRUXURE™ building products, announced today that it has recently worked with Long Island Rail Road (LIRR), the busiest commuter railroad in North America, and CTL Group, a global design and engineering firm, to conduct independent, third party durability tests. AXION and LIRR removed several AXION formulated rail ties that have been in use at the eastern most end of Long Island near Montauk for more than eight (8) years. The tests performed by CTL Group on these rail ties proved they maintained their structural durability and showed no signs of degradation over their eight-plus years of use. The tests further concluded that these ties meet and exceed the American Railway Engineering and Maintenance of Way Association (AREMA) standards set forth for those particular tests, and in several cases doubled the AREMA standards. To request a copy of the report please contact us at: ECOTRAX@axih.com

AXION recently received another purchase order for ECOTRAX™ from LIRR, which intends to install additional ECOTRAX™ rail ties in various locations throughout Long Island. LIRR was seeking specialty ties of up to 31 feet in length, which AXION is uniquely positioned to deliver. Because ECOTRAX™ composite rail ties are made from AXION's patented, 100% recycled plastic formulation, they can be built to meet unique sizes and specifications that would be more difficult to meet using traditional lumber.

"This order and the accompanying durability report are very exciting news for AXION," stated Steven Silverman, AXION's CEO and President. "It's great to have in-the-ground proof that AXION formulated rail ties perform well over many years of use and don't break down over time even in damp, harsh weather environments like those in parts of Long Island. This report demonstrates that ECOTRAX™ ties are a durable and cost effective alternative to traditional materials. We are invested in solving customer problems by providing a high quality, consistent product, to meet size and performance specifications."

AXION Sales Manager Cory Burdick added, "LIRR's commitment to AXION is encouraging and shows that we're on the right track for further building our railroad business in partnership with some of the most respected names in the industry. The 2000 AXION formulated ties that were installed on the LIRR roughly ten years ago have maintained a 0% failure rating. The testing conducted by the CTL Group proves that these ties in some ways actually improve over time. The screw spike pull out tests showed that our ties actually strengthen their grip on the spike over time, yielding higher pull out resistance as the ties age. And while accelerated lab testing of ECOTRAX™ composite ties have historically shown that they don't degrade over time, it's great to have real life testing that proves after more than eight years of on-track use on one of our nation's busiest transit lines, and in some of the harshest weather environments on the east coast, AXION formulated ties are just as strong if not stronger than the day they were installed."

The use of 100% recycled composite ties represents another 30,000 pounds of plastic being taken out of the landfill chain and recycled into long-lasting infrastructure products, creating a solution to challenges faced by railroads searching for longer length specialty ties.

"We're very pleased to be working with AXION as a customer for of our baled high-density polyethylene (HDPE) plastic, produced from the New York City curbside recycling program," added Tom Outerbridge, General Manager, Sims Municipal Recycling. "It's exciting to think that detergent bottles put out for recycling collection by New Yorkers can show up in a long lasting and local application like transit lines right here in our own backyard. It's just a great example of the value of recycling and local manufacturing. "

Ron Gonen, New York Deputy Commissioner of Sanitation, Recycling and Sustainability also added, "Local companies and agencies partnering together to utilize recycled materials in their products demonstrates the importance and opportunity that recycling provides our local economy."

About ECOTRAX™ECOTRAX™ composite railroad ties are made from AXION's patented, 100%-recycled plastic formulation. Because they are inert, ECOTRAX™ ties will not rot or absorb moisture, and they are impervious to insect infestation. Setting the industry standard for composite railroad ties, ECOTRAX™ ties meet and exceed all American Railway Engineering and Maintenance-of-Way Association specifications and are continuously tested at third-party laboratories and in track. ECOTRAX™ ties feature long life cycles and excel in the harshest conditions, making them a cost-effective choice in road crossings, switches and turnouts, open-deck bridges, and freight line track. From Australia to New York, ECOTRAX™ composite railroad ties are the tested, proven, and superior choice for railroads around the world. For more information about ECOTRAX™ composite railroad ties, click here to learn more.

For more information about AXION's green technology and ECOTRAX® line, visit www.axih.com.

About Long Island RailroadThe Long Island Rail Road is the busiest commuter railroad in North America, carrying an average of 301,000 customers each weekday on 735 daily trains. Chartered on April 24, 1834, it is also the oldest railroad still operating under its original name. Throughout that time, the LIRR has been an essential component of the region's transportation infrastructure, leading to the development of the Long Island communities it serves and providing a gateway to the economic growth of the region. A subsidiary of New York State's Metropolitan Transportation Authority, the Long Island Rail Road marked its
175th Anniversary in 2009.

About Sims Municipal RecyclingSims Municipal Recycling has a 20-year contract with NYC to recycle all of their commingled and in 2014, they will be accepting about half of the city's paper recycling. Sims Municipal Recycling is owned by Sims Metal Management, the world's leading metal and electronics recycler. For more information, please email services@simsmm.com; or click here to find a Sims Metal Management location near you.

About AXION International, Inc.AXION (OTCBB: AXIH) (OTCQB: AXIH) is green technology company, transforming waste plastics into structural building materials. Using 100%-recycled consumer and industrial plastics, AXION develops, markets and sells its recycled structural composite products through its ECOTRAX® composite railroad tie and STRUXURE® building material lines. From the railroading industry to the military to global engineering firms, AXION delivers tested, proven and superior green solutions to infrastructure needs around the world.www.AXIH.com

Forward-Looking Statements This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause AXION's actual results to differ materially from those currently anticipated, including the availability of materials at favorable pricing, sufficient manufacturing capability and the risk factors identified in AXION's filings with the Securities and Exchange Commission.